Osler News

Osler releases inaugural, multi-year study of 300+ Canadian VC and growth equity financings

Mar 22, 2022 3 MIN READ

Analysis of public and non-public data reveals strong deal pipeline of Canadian Series Seed and growth companies with insights for founders, entrepreneurs and investors.

Osler's Emerging and High Growth Companies Group Issues Deal Points report: Venture Capital Financings, its first comprehensive study of 332 anonymized venture capital and growth equity financings from 2019–2021, valued at US$5.7 billion, to provide data and insights for founders, entrepreneurs, investors and advisors contemplating transactions this year and beyond.

"The report is unique within the market as it draws on both publicly available data on venture capital and growth equity financings, as well as Osler's confidential anonymized data sources," said the report's lead author, Calgary-based partner Michael Grantmyre. "We have examined a large sample size of these transactions and have distilled actionable insights on that data, including on common terms and structural considerations."

"This report reveals a compelling picture of a vibrant and growing new economy that continues to create jobs and stimulate both economic growth and innovation across the country, as well as attracting significant amounts of domestic and international investment. In many ways the startups, high growth companies and investors in this Canadian sector have led the deal trajectory across Canada's major innovation centres," Grantmyre said.

Some of the Deal Points Report's noteworthy findings:

  • Continuing maturation of startup and high growth companies in Canada in 2020 and 2021, with a strong pipeline of companies raising capital at the Series Seed and Series A stages and a rapidly growing segment of maturing companies completing Series B and beyond financings.
  • Secondary transactions were very common in post-Series Seed stage financings, with almost 50% of all Series B financings including a secondary component.
  • Alignment of Canadian and U.S. financing terms on account of the high levels of U.S. investment in Canadian financings and as companies and investors increasingly adopt these terms as a "best practices" approach to financings.

"As the leading law firm for startups, high growth companies and investors in Canada, we knew that we had access to an incredible volume of transaction data," said Chad Bayne, Co-Chair and partner, Emerging and High Growth Companies Group at Osler.

"Our team's analysis of these transactions demonstrates the maturation of the ecosystem in Canada. Our report not only takes a deep dive into the metrics, but also highlights quintessential Canadian success stories of founders who, with vision, drive, talent and tenacity, were able to bring an idea to market," he adds. "We are proud of them and all our other clients who look to us for both mission-critical and day-to-day advice as they scale and help establish the future of the Canadian economy."

Read the Deal Points Report: Venture Capital Financings

For further information:

Calgary – Michael Grantmyre, mgrantmyre@osler.com

Toronto – Chad Bayne, cbayne@osler.com

Vancouver – Mark Longo, mlongo@osler.com

Montréal – Nathalie Beauregard, nbeauregard@osler.com

Media Contact – Rebecca Goldberg, Media and PR Specialist, rgoldberg@osler.com

About Osler's Emerging and High Growth Companies Group

Osler's Emerging and High Growth Companies Group and Venture Capital teams help clients recognize, develop and realize innovative venture capital opportunities. Osler acts for more than 1,000 early, growth and late-stage ventures and venture investors across Canada, the United States and around the world.

About Osler

Osler is a leading law firm with a singular focus – your business. From Toronto, Montréal, Calgary, Ottawa, Vancouver and New York, we advise our Canadian, U.S. and international clients on an array of domestic and cross-border legal issues. Our collaborative "one firm" approach draws on the expertise of over 450 lawyers to provide responsive, proactive and practical legal solutions driven by your business needs. For over 150 years, we've built a reputation for solving problems, removing obstacles, and providing the answers you need, when you need them. It's law that works.